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SPSS INC. ANNOUNCES RECORD THIRD QUARTER SALES AND EARNINGS GROWTH ATTRIBUTED TO STRONG DESKTOP SOFTWARE SALES

 CHICAGO, Nov. 3 /PRNewswire/ -- SPSS Inc. (NASDAQ: SPSS), a worldwide leader in statistical software, today announced record financial results for the third quarter. Coming off of its August 1993 IPO, the company said that the quarter was the best third quarter in its 18-year history, exceeding analysts' projections for revenue, operating margins and earnings per share. Management attributed the success during the quarter to growing acceptance of the company's award-winning SPSS for Windows(TM) product.
 OPERATING INCOME UP 37 PERCENT AND EPS MORE THAN DOUBLED
 Operating income for the three months ended Sept. 30, 1993, was $1,557,000, up 37 percent from the same period in 1992. Net income for the quarter was $683,000, a 209 percent increase over the prior year. Earnings per share, before nonrecurring items, were $0.14 compared with $0.06 in last year's third quarter. President and CEO Jack Noonan said, "This has been a record quarter for us. The second release of our highly successful SPSS for Windows product occurred at the end of June, and it was instrumental in fueling growth in the third quarter. SPSS for Windows continues to provide users with `Real Stats. Real Easy'." Significant gains were also realized from nonrecurring items related to the recognition of a deferred tax asset as well as a non-cash charge connected with the elimination of long-term debt through the company's recent public offering. Net income after these adjustments rose to $934,000 and earnings per share were $0.19.
 DESKTOP SALES BOOST REVENUES
 Revenues for the third quarter of 1993 were $10,722,000, an increase of 10 percent over the third quarter 1992 revenues of $9,724,000, with revenues from the company's desktop products growing by 30 percent. According to Noonan, revenue growth for the quarter would have been even higher if not for the adverse effects of changes in foreign currency exchange rates, a matter significant to SPSS since almost half of its revenues come from overseas markets. Noonan also explained that improvements in operating income were largely due to increased sales of SPSS for Windows and reductions in operating expenses from the company's new relationship with Prentice-Hall, the exclusive distributor of SPSS texts and student software to higher education.
 Revenues for the first nine months of 1993 increased 17 percent to $30,860,000 from $26,356,000 during the same period in 1992. Operating income for the nine-month period increased to $3,983,000 from a net operating loss of $1,153,000 in the prior year. Net income was $1,666,000 with earnings per share of $0.39; after adjustments for nonrecurring items, net income was $1,537,000 with earnings per share of $0.36.
 NEW PRODUCTS, INCREASED SALES OF SPSS FOR WINDOWS EXPECTED
 IN FOURTH QUARTER
 "We expect to equal or exceed analysts' projections in the fourth quarter," Noonan said. The company expects to continue to build on the success of SPSS for Windows and introduce a number of new products. "We plan to ship QI Analyst, a new quality improvement product, the new SPSS for Windows Student Version for distribution by Prentice-Hall, at least two additional UNIX(TM) products featuring a new Motif(TM) interface, and French, Japanese and Italian language versions of SPSS for Windows to complement current versions in English and German. Moreover, we plan to also introduce a Developer's Tool Kit that will enable users to integrate SPSS for Windows into other products and applications. In short, we are very excited about the prospects for the fourth quarter of this year."
 SUMMARY RESULTS
 (000s, except per share amounts)
 Excludes Nonrecurring
 Percent Items Percent
 1993 1992 Chg 1993 Chg
 Net revenues $10,722 $ 9,724 10
 Operating income 1,557 1,135 37
 Net income 934 221 323 683 209
 EPS 0.19 0.06 225 0.14 138
 Shares outstanding 4,994 3,851 4,994
 ABOUT THE COMPANY
 SPSS Inc. provides statistical product and service solutions for marketing, quality improvement, scientific research, government reporting and education for the $250 million statistical software market. SPSS software products operate on most models of all major computers, including Apple, Digital, IBM, IBM compatibles, Hewlett- Packard and Sun. In addition to its Federal Systems Office in the Washington, D.C. area, SPSS has international offices in Australia, France, Germany, India, Japan, the Netherlands, Singapore, Sweden, the United Kingdom and distributors worldwide. SPSS is headquartered at 444 North Michigan Avenue, Chicago, Ill. 60611, tel. 800-543-9262.
 SPSS is a registered trademark of SPSS Inc. UNIX is a trademark of UNIX Systems Inc. Windows is a trademark of Microsoft Corp. Motif is a trademark of Open Software Foundation Inc.
 For Additional Information on SPSS Inc. by Fax at No Cost, Dial 800-PRO-INFO, Code #060.
 SPSS INC.
 444 N. Michigan Avenue
 Chicago, Ill. 60611
 -0- 11/3/93 R
 /CONTACT: Edward Hamburg, CFO or Mark Battaglia, VP - Marketing of SPSS INC., 312-329-2400; or George Zagoudis or Julie Creed or Larry Mathias of Financial Relations Board, 312-266-7800/
 (SPSS)


CO: SPSS Inc. ST: Illinois IN: CPR SU: ERN

MP -- NY058R -- 0423 11/03/93 19:50 EST
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Date:Nov 3, 1993
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